(keitai-l) Re: tsutaya ads

From: Stephen Walker <stephen_at_valueclick.ne.jp>
Date: 09/05/00
Message-Id: <4.2.0.58.J.20000905105450.00ab2e50@211.10.3.146>
Hello

Good to see a few people actually do read the Nikkei. They certainly charge 
plenty for adspace :)

A few comments on the previous comments:

As Jeffrey said, ValueClick Japan is serving about one million text ads a 
day via about 180 katte sites on i-mode. And as Jonathan pointed out, 
ValueClick and the host site only receive revenue when a click-through 
occurs. A click-through rate of around three times the PC banner model is 
probably a good guess. (PC banner click through rates are 0.3- 0.5% in the 
US and Japan).

If Tsutaya Online really are getting a 7% CTR, good on them, but how long 
can they maintain that? In general, whether keitai ad click rates drop off 
as fast or faster than the PC will depend on how the advertisers choose to 
use the medium. It's going to get quite interesting...



At 20:37 00/09/04 +0900, Jonathan W. Anderson wrote:
>I've looked back at my copy of the same (probably) article that Jeff
>mentions.
>
>Some notes:
>1) The click thru rate is about three times higher, but the article states
>that the cost per click is only about 30% higher than for regular PC
>banners.
>
>2) Since they are a cost per click model, ValueClick only makes money if
>you click on the banners (in this case text banners).
>
>According to another article (probably Nikkei Sangyo, I only have the
>clipping
>and don't remember, sorry) they are selling 13,000 clicks at a cost of 115
>yen
>per click, a total cost of 1,500,000 yen.  Assuming they get a 7% click-thru
>like
>Tsutaya Online got in their tests, ValueClick will need 185,714 page views a
>day
>to meet that click guarantee.  Since they are showing 1,000,000 text banners
>(aka pages) a day, then the most they could be making a day is around
>6,800,000
>yen.  This drops to 5.8 to 6 million if you subtract ad agency fees (15% of
>total
>cost of the ad).
Received on Tue Sep 5 05:29:14 2000